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Many customers ask us about "climate change levy" (CCL) and "VAT" as they appear on most bills.
To try and help you we have put together a short guide below to what it is and does it apply to you.
All the calculations for any savings on this site are exclusive of VAT and climate change levy.
Climate Change Levy
Climate change levy came into force in April 2001. It is a direct result of the 1997 Kyoto Summit on Climate Change,
where the EU signed up to an agreement to reduce Greenhouse Gas Emissions to try to help slow the effects of green house gases on our planet.
The UK share was a commitment to reduce by 12.5% on 1990 levels by the year 2010.
The levy is a tax on business that use differing forms of energy which all energy suppliers have the responsibility of collecting from their customers.
The current rates of the levy are shown below.
The amount is charge per unit or energy or Kwh (kilowatt hours) you use:
- Electricity 0.456 p/kWh
- Natural Gas 0.159 p/kWh
- LPG 1.018 p/kWh
- Coal 1.201 p/kWh
Most Uk business will have to pay Climate change levy unless they fall into one of the categories below:
- Smaller business on domestic tariffs or that pay vat at 5%
- Renewable forms of energy such as hydro or wind power
- Charities and charitable organisations
- Public transport Services that are 0% vat registered
- Very large energy users that have signed up to agree to reduce energy usage over a period of time.
They are allowed a % reduction.
They do need a climate change reduction certificate which can be obtained from thier supplier or customs and excise.
For more information please visit this useful web site http://www.cclevy.com/
VAT
Most business pay VAT at the rate of 17.5%.
Some smaller business and charities may charge vat at 5% or even 0%.
Smaller business on domestic tariffs or using small volumes of energy may qualify for vat at 5%.
If you are on the lower rate then you many need to provide the new supplier with a VAT Declaration certificate.
If you are VAT registered you may be able to claim the VAT back against your VAT bill.
The amount is charged against the subtotal of your charges on your bill.
Those are the facts so click here to see what you can save.
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